Question
In: Accounting
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
|
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: |
| Production data: | ||
|
Pounds in process, May 1; materials 100% complete; conversion 90% complete |
77,000 | |
| Pounds started into production during May | 420,000 | |
| Pounds completed and transferred out | ? | |
|
Pounds in process, May 31: materials 80% complete; conversion 20% complete |
37,000 | |
| Cost data: | ||
| Work in process inventory, May 1: | ||
| Materials cost | $ | 130,300 |
| Conversion cost | $ | 61,100 |
| Cost added during May: | ||
| Materials cost | $ | 677,540 |
| Conversion cost | $ | 336,190 |
| The company uses the weighted-average method. |
Solutions
Expert Solution
Flow of physical units of outflow -
| particulars | physcial units | material | conversion |
| WIP, Beginning | 77000 | 100% | 90% |
| units started into production | 420000 | ||
| Completed and transferred out | 460000 | ||
| WIP, Ending | 37000 | 80% | 20% |
| particulars | material | conversion | |
| Beginning WIP Cost | 130300 | 61100 | |
| cost added during the month | 677540 | 336190 | |
| Total | 807840 | 397290 |
| particulars | material | conversion | |
| Units completed and transferred out (physical unit*% of completion) | 460000 | 460000 | |
| WIP (Ending equivalent unit), (WIP ending physical unit*% of completion) | 29600 | 7400 | |
| Total Equivalent units | 489600 | 467400 |
1.Computation of Equivalent units cost for Direct material and conversion costs -
| particulars | material | conversion | ||
| A | Total cost incurred done to date (May) | 807840 | 397290 | |
| B | Total Equivalent units | 489600 | 467400 | |
| C | Equivalent cost per unit (A/B) | 1.65 | 0.85 |
2. Calculation of Equivalent cost per unit and assign cost to the units completed (and transferred out) and units in WIP -
| particulars | material | conversion | ||
| A | Total cost incurred done to date (May) | 807840 | 397290 | |
| B | Total Equivalent units | 489600 | 467400 | |
| C | Equivalent cost per unit (A/B) | 1.65 | 0.85 | |
| D | Units completed and transferred out | 460000 | 460000 | |
| Cost assigned to completed and transferred out units(C*D) | 759000 | 391000 | ||
| E | WIP, Ending Equivalent unit | 29600 | 7400 | |
| Cost assign to WIP, Ending units(C*E) | 48840 | 6290 |
ekkarill92 answered 1 year agoRelated Solutions
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc., manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given
below for May:
Production
data:
Pounds in
process, May 1; materials
100% complete; conversion 90%
complete
63,000
Pounds
started into production during May
280,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 75% complete;
conversion 25% complete
23,000
Cost data:
Work in
process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc., manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given
below for May:
Production
data:
Pounds in
process, May 1; materials
100% complete; conversion 90%
complete
85,000
Pounds
started into production during May
500,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 80% complete;
conversion 20% complete
45,000
Cost data:
Work in
process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc., manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given
below for May:
Production
data:
Pounds in
process, May 1; materials
100% complete; conversion 90%
complete
85,000
Pounds
started into production during May
500,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 80% complete;
conversion 20% complete
45,000
Cost data:
Work in
process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products,
Inc., manufactures a caulking compound that goes through three
processing stages prior to completion. Information on work in the
first department, Cooking, is given below for May:
Production data:
Pounds in process, May 1; materials
100% complete; conversion 90%
complete
77,000
Pounds started into production during
May
420,000
Pounds completed and transferred out
?
Pounds in process, May 31:
materials 80% complete;
conversion 20% complete
37,000
Cost
data:
Work in process inventory, May 1:...
Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc. manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, cooking, is given
below for May:
Production data:
Units in process, May 1: 100% complete as to materials and 80%
complete as to labour and overhead
15,800
Units started into production during May
118,000
Units completed and transferred out
108,000
Units in process, May 31: 60% complete as to materials and 20%
complete as to labour and...
Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc. manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, cooking, is given
below for May:
Production data:
Units in process, May 1: 100% complete as to materials and 80%
complete as to labour and overhead
15,600
Units started into production during May
116,000
Units completed and transferred out
106,000
Units in process, May 31: 60% complete as to materials and 20%
complete as to labour and...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products,
Inc., manufactures a caulking compound that goes through three
processing stages prior to completion. Information on work in the
first department, Cooking, is given below for May:
Production data:
Pounds in process, May 1; materials
100% complete; conversion 90%
complete
90,000
Pounds started into production during
May
550,000
Pounds completed and transferred out
?
Pounds in process, May 31:
materials 70% complete;
conversion 30% complete
50,000
Cost
data:
Work in process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc., manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given
below for May: Production data: Pounds in process, May 1; materials
100% complete; conversion 90% complete 83,000 Pounds started into
production during May 480,000 Pounds completed and transferred out
? Pounds in process, May 31: materials 75% complete; conversion 25%
complete 43,000 Cost data: Work in process inventory, May 1:
Materials cost $ 128,300...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc., manufactures a caulking compound that
goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given
below for May:
Production
data:
Pounds in
process, May 1; materials
100% complete; conversion 90%
complete
69,000
Pounds
started into production during May
340,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 80% complete;
conversion 20% complete
15,000
Cost data:
Work in
process inventory, May 1:...
Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....
Builder Products, Inc. manufactures a caulking compound
that goes through three processing stages prior to completion.
Information on work in the first department, cooking, is given
below for May:
Production data:
Units in process, May 1: 100% complete as to materials
and 80% complete as to labour and overhead
16,700
Units started into production during May
127,000
Units completed and transferred out
117,000
Units in process, May 31: 60% complete as to materials
and 20% complete as to labour and...
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